DBRS Morningstar: U.S. Cap Mkts Banks Report Solid 3Q19 Results; Consolidate Top Global Positioning

DBRS, Inc. (DBRS Morningstar) published a commentary highlighting the 3Q19 results of the U.S. capital markets participants. 3Q19 capital markets results were solid, supported by franchises with significant scale and diversity. Strong Debt Underwriting and Financial Advisory net revenues provided an offset to lower Equity Underwriting results.

Key highlights include:

• IB net revenues improved 6% YoY. The U.S. banks have consolidated their leading global positioning with global IB market shares ranging from 5% to 9%.
• Fixed Income S&T net revenues increased 11% YoY across the peer group, indicative of the strength and diversity of these businesses.
• Equity S&T net revenues ticked up only modestly YoY. The peer group is generally reporting higher prime brokerage balances, benefiting revenues.

“The 3Q19 capital markets operating backdrop was mixed with continued uncertainties surrounding trade and the rate environment, which impacted the broader industry. While global growth is slowing, accommodative central bank policies are supporting the capital markets,” said Lisa Kwasnowski, Senior Vice President.

This commentary is available at www.dbrs.com.

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